"A majority of people classified as poor and extremely poor reside in villages. Mr. President has demanded that extreme poverty be dealt with by 2026, and I want the Red and White Village Cooperatives program to be on point," he added.
In a statement received from his office here on Monday, Priyono cited National Single Social and Economic Data (DTSEN), which shows that Indonesia is home to 24 million economically disadvantaged residents, 3.17 million of whom fall in the extremely poor category.
He then added that 39.93 percent of poor citizens and 46.26 percent of extremely poor people depend on informal agricultural activities for their livelihood.
The deputy minister observed that promoting the cooperative business model in more villages would provide economically disadvantaged rural residents with broader access to financial sources, and ultimately enable them to improve their welfare.
Priyono expressed confidence that all things considered, the Red and White Village Cooperatives program will help the government realize its target of eliminating extreme poverty by 2026.
He made the remarks during a limited ministerial meeting on the formation of a task force for the program in Jakarta.
On the same occasion, Coordinating Minister for Food, Zulkifli Hasan, said that the government will consider the views of village officials and residents in implementing the program.
He added that the central government will not neglect existing business entities, such as farmer groups, village-owned enterprises, and cooperatives.
"In principle, we must initiate this program no later than six months from now," he stressed.
President Prabowo Subianto is planning to set up 70 thousand village cooperatives across regions to spur progress and prosperity in rural areas.
On March 7, 2025, Cooperatives Minister Budi Arie Setiadi said that the cooperatives will be designated as one-stop facilities offering storage, savings and loans, pharmaceuticals, and medical services.
The minister estimated that developing one village cooperative would cost Rp5 billion (around US$306 thousand).
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Translator: Hana D, Tegar Nurfitra
Editor: Arie Novarina
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